Rural hospitals fared worse financially in states that did not expand their Medicaid programs under the Affordable Care Act than in states that did expand Medicaid, a new KFF analysis finds.
Nearly one-third of all rural hospitals nationally are in 11 states that have not approved expansion of their Medicaid programs to cover low-income childless adults, and concerns about their ongoing feasibility have been factored into the legislative debate. There has been an issue whether to do so or not.
The analysis shows that the average operating margin for rural hospitals has been consistently higher in states that have expanded their Medicaid programs compared to non-expansion states from July 2017 to June 2022, although the financial stability of individual rural hospitals may vary. varies widely.
For the most recent period, July 2021 through June 2022, based on an analysis of 438 hospitals, the average operating margin for rural hospitals in states that have not expanded their Medicaid programs compared to 3.9% in expansion states I had 2.2%.
If not for federal COVID-19 relief funds, rural hospitals would face even more challenging times as their finances worsen, with average operating margins at 1.2% in expansion states and -0.7 in non-expansion states % is reduced when document relief is subtracted. Wealth.
Based on the analysis of the hospital cost report, Rural hospitals face renewed financial challenges, especially in states that haven’t expanded Medicaid Part of KFF’s extension work examining the business practices of hospitals and other providers and their impact on cost and affordability.